Bitcoin’s price is in the depths of uncertainty after falling to the lower $8000 range. Enthusiasts have been left wondering what happened and how the crypto’s largest asset found itself there, especially after an exciting rise from $3,330 to $13,880 in the early stages of the year.
June 26th became bitcoin’s peak price this year after which the flagship cryptocurrency formed a descending triangle. Almost at the end of the pattern, bitcoin dived from $9,700 to $8,000 in a single day. This happened a day after the launch of Bakkt, a physically-settled bitcoin future product. Following the loss, prominent crypto experts have provided insights on the drop.
Market Was Due For Action
Crypto analyst and podcaster Brian Krogsgard is popularly known as ledger status asserted in an interview that the market was desperate for a move after a three-month tight consolidation kept it at bay.
According to Krogsgard, as bitcoin broke down, it punched through a moving average which possibly accelerated its drop. The breakdown was a break under the 20-week moving average which has been significant support for prior bull and bear markets.
Hesitant from The Start
Popular analyst Tone Vays says bitcoin began its bloody bath with an exorbitant price run which had been recorded earlier. To Vays, the entire run didn’t seem right.
Vays went ahead and pointed out the alternative metrics that other crypto traders had acknowledged to justify bitcoin’s parabolic run like the high volume on the blockchain asset. To him, however, he stuck with the price and it wasn’t making sense to him.
Vays also acknowledged that there was no fresh money that had entered the market in the form of new participants. This is in contrast to 2017 when its price had skyrocketed to $20,000 on the onset of new market entrants amid massive public attention.
A Lack of Strength In The Market
Crypto cred, a renowned educator and trader analyzed the breakdown and posted an educational analysis on YouTube. According to cred, a period of consolidation follows strong urges in price. Therefore, after the consolidation, the price was bound to move in the same direction as its initial price move.
The price should have continued moving higher after the consolidation. It, however, started moving downwards. Why? One reason: a lack of market strength.
Bitcoin sits around the $8000 range waiting for a set up for its next move. Krogsgard notes that the price could dive down to $5,000 or $6000. Bitcoin sits tightly in limbo between the lower prices. For an upward momentum, it will need to regain a few key levels. Krogsgard asserts that if $8400 could be reclaimed, a move up to retest the breakdowns or $9400 could be very much possible.
In the meantime, the price action demands a watchful eye.